Castle Hill industrial facility changes hands for $23.5 million

An owner-occupier has acquired a Castle Hill industrial office and warehouse facility for $23.5 million following a competitive campaign highlighting the depth of demand and competition across Sydney’s north west.

CBRE’s Matthew Alessi and Brendan Wein in conjunction with Stephen Chronopoulos of Parkside Commercial managed the transaction of 3 Hudson Avenue. 

The purchaser, relocating from the Central West, identified strong value in the asset’s operational capability, particularly its temperature-controlled warehouse and ability to support immediate occupation.

Mr Alessi said, “Demand remains strong from businesses looking to secure assets they can operate from immediately, particularly in tightly held locations like Castle Hill.

“The eventual buyer recognised that combination of specialised improvements, immediate usability and the tightly held location is incredibly difficult to replicate, particularly in a market where supply is so constrained,” he added.

The 4,708sqm office and warehouse facility is situated on a 9,167sqm Torrens-title landholding within the tightly held Castle Hill industrial precinct, where supply remains limited.

Mr Wein added, “We’re seeing a clear shift where buyers are underwriting not just what the asset does today, but what it allows them to do in five or ten years,”

“That’s why buildings with scale, power and expansion capability are attracting such strong competition. They future proof the business as much as they solve today’s requirement,” he said.

The campaign attracted interest from both owner occupiers and investors, driven by the combination of vacant possession and the property’s functional improvements, including 12.9 metre internal clearances, a fully sprinklered warehouse, expansive office accommodation and 138 on-site parking spaces.

The asset also benefits from significant future upside, with the large 9,167sqm underdeveloped site offering just 51.4% site coverage and favourable planning controls, including a 1:1 FSR and 20 metre height limit, providing numerous value add and repositioning opportunities.

CBRE and Parkside Commercial are overseeing several industrial opportunities across Sydney’s outer north west and Western Sydney markets, with campaigns consistently highlighting strong depth of demand, continued competition and ongoing transaction strength.